Share-based Compensation

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Omnibus Incentive Plan

Infinity Natural Resources, Inc. adopted the Infinity Natural Resources, Inc. Omnibus Incentive Plan (the “Plan”). The Plan provides for the grant of stock-based awards to the Company’s employees, non-employee directors, and consultants, including restricted stock units (“RSUs”), performance stock units (“PSUs”), stock options, stock appreciation rights, restricted stock, dividend equivalent rights and other stock or stock-based awards. An aggregate of 5,888,889 shares of Class A common stock has been reserved for issuance under the Plan, subject to adjustments for stock splits, recapitalizations, and other corporate events. We recognize share-based compensation expense in the consolidated statement of operations as a component of General and administrative, with a corresponding credit to APIC in the consolidated balance sheet.

Restricted Stock Units

In March 2026, the Company granted an additional 531,623 RSUs to certain employees and non-employee directors under the Plan. The RSUs granted to employees generally vest ratably over a three-year service period, while the RSUs granted to non-employee directors vest in full on the one-year anniversary of the grant date.

In February and March 2026, 294,638 previously issued RSUs vested and settled in Class A common stock, of which 70,571 were withheld to cover employee tax obligations. The total fair value of shares vested was $5.2 million and the fair value of shares withheld $1.2 million which was remitted in cash to the tax authorities.

The grant-date fair value of each RSU is determined based on the closing stock price of the Company’s Class A common stock on the grant date. Share-based compensation expense related to RSUs is recognized on a straight-line basis over the requisite service period, which corresponds to the vesting terms of the respective awards. We account for forfeitures as they occur. The following table summarizes the RSU activity for the three months ended March 31, 2026:


	RSUs	Weighted-average grant date fair value

Unvested as of beginning of period	433,482	$	18.17
Granted	531,623	$	17.26
Vested and settled	(294,638)	$	18.65
Canceled/Forfeited	(1,625)	$	17.23
Unvested as of end of period	668,842	$	17.23

The RSUs are entitled to Dividend Equivalent Rights (as defined in the Plan) on unvested RSUs, which are payable only if the underlying RSUs vest. The Company recognized compensation expense for RSUs of $1.1 million and $0.6 million for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, unrecognized compensation expense related to unvested RSU awards was $11.2 million, which is expected to be recognized over a weighted-average remaining service period of 2.5 years.

Performance Stock Units

In March 2025, the Company granted Performance Stock Units ("PSUs") under the Plan to certain employees. The PSUs are subject to a performance period from the grant date to December 31, 2027.

In March 2026, the Company granted additional PSUs under the Plan to certain employees. The PSUs are subject to a performance period from January 1, 2026 to December 31, 2028.

For all PSUs, vesting is based on the Company's Total Shareholder Return (“TSR”) relative to a defined peer group and the Company's absolute TSR over the applicable performance period. The number of PSUs that may vest ranges from 0% to 300% of the target award, depending on performance outcomes.

The grant-date fair value of the PSUs was estimated using a Monte Carlo simulation model, which reflects the probability of achieving various market-based outcomes and incorporates key assumptions such as expected volatility, risk-free interest rate, expected dividend yield and correlation with the peer group.


	2026	2025
Expected volatility	45.00%	40.00%
Risk-free rate	3.50%	4.04%
Expected dividend yield	—%	—%
Correlation with peer group range	25.00% - 68.00%	45.00% - 68.00%

The fair value was determined on the grant date and will not be remeasured. Compensation expense for the PSUs is recognized on a straight-line basis over the requisite service period, which begins on the grant date and ends on the certification date. Expense is recognized regardless of whether the market conditions are ultimately achieved, provided the service condition is satisfied. The Company accounts for forfeitures as they occur. The PSUs are entitled to Dividend Equivalent Rights (as defined in the Plan) on unvested PSUs, which are payable only if the underlying PSUs vest. The following table summarizes the PSU activity for the three months ended March 31, 2026:


	PSUs	Weighted-average grant date fair value

Unvested as of beginning of period	426,582	$	22.20
Granted	428,363	32.04
Vested	—	—
Canceled/Forfeited	—	—
Unvested as of end of period	854,945	$	27.13

The Company recognized compensation expense for PSUs of $1.1 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, unrecognized compensation expense related to unvested PSU awards was $19.5 million, which is expected to be recognized over a weighted-average remaining service period of 2.6 years.